Several leading undergraduate intermediate macroeconomics textbooks now include a simple reduced-form New Keynesian model of short-run dynamics (alongside the IS-LM model). Unfortunately, there is no accompanying description of how the zero lower bound on nominal interest rates affects the model. In this article, the authors show how the…

In this study, the authors investigate the relationships among gender, math skills, motivation, and study success in economics and econometrics. They find that female students have stronger intrinsic motivation, yet lower study confidence than their male counterparts. They also find weak evidence for a gender gap over the entire first-year…

Using 1994-95, 2002-3, and 2008-9 data, the author found that economics majors scored well on the LSAT® (1998, 2006, 2010). These results are often posted on university economics (and other) department Web sites. The author, who updates the prior studies using current data for law school applicants for the 2012-13 class of students entering law…

The "National Standards for Financial Literacy" describe the knowledge, understanding, and skills that are important for students to learn about personal finance. They are designed to guide teachers, school administrators, and other educators in developing curriculum and educational materials for teaching financial literacy. In this…

Although the concept of the sampling distribution is at the core of much of what we do in econometrics, it is a concept that is often difficult for students to grasp. The thought process behind bootstrapping provides a way for students to conceptualize the sampling distribution in a way that is intuitive and visual. However, teaching students to…

In this article, the author explains why field experiments can improve what we teach and how we teach economics. Economists no longer operate as passive observers of economic phenomena. Instead, they participate actively in the research process by collecting data from field experiments to investigate the economics of everyday life. This change can…

Adverse selection as it relates to health care policy will be a key economic issue in many upcoming elections. In this article, the author lays out a 30-minute classroom experiment designed for students to experience the kind of elevated prices and market collapse that can result from adverse selection in health insurance markets. The students…

Individuals vary in their responses to incentives and opportunities. For example, additional education will affect one person differently than another. In recent years, econometricians have given increased attention to such heterogeneous responses and to the consequences of such responses for interpreting regression estimates, especially…

In this article, the author considers the merits of two classes of profit maximization problems: those involving perfectly competitive firms with quadratic and cubic cost functions. While relatively easy to develop and solve, problems based on quadratic cost functions are too simple to address a number of important issues, such as the use of…

The authors describe their experience with integrating a semester-long economic analysis project into an intermediate macroeconomic theory course. Students work in teams of "economic advisors" to write a series of nested reports that analyze the current state of the economy, and propose and evaluate policies for a decision-maker. The…

In experiential education, the student learns through experience by observing a concept or phenomenon and applying this knowledge in a real-world context. A research project conducted by undergraduate students at a U.S. private liberal arts college is described in this article. The project provided opportunity for students to think about their…

In this article, the author presents a way of using in-class debates to discuss contentious issues and help students develop critical thinking skills. Three elements were incorporated into an undergraduate public finance course: a presentation of ethical approaches in order to formally discuss normative issues, class debates which required…

Over the last few years, classroom response systems (or "clickers") have become increasingly common. Although most systems require students to use a standalone handheld device, bring-your-own-device (BYOD) systems allow students to use devices they already own (e.g., a cell phone, tablet or laptop) to submit responses via text message or…

In this article, the authors use a large, recent, and accessible data set to examine the effect of economics major on individual earnings. They find a significant positive earnings gain for economics majors relative to other majors, and this advantage increases with the level of education. Their findings are consistent with Black, Sanders, and…

Economics has been shown to be a relatively high-earning college major, but geographic differences in earnings have been largely overlooked. The authors of this article use the American Community Survey to examine geographic differences in both absolute earnings and relative earnings for economics majors. They find that there are substantial…